Demand for talent management drives substantial revenue growth for StepStone in Q3

Demand for the company's online products increased in September after the traditionally slower summer months of July and August. Total online sales in the third quarter were in line with 2008 planning expectations - up 24% versus the same period last year. Online demand in European markets is however developing at markedly different rates. StepStone's online sales in Germany continued to grow at a rate consistent with that of the last few quarters, whilst there is a clear deceleration of growth rate in most other markets.

Conversely, the company experienced record third quarter demand for its talent management products.

The company attracted 95 new talent management customers in Q3 2008 and continued to complete an increasing number of cross sale and up sale transactions amongst its extensive customer base.

At the end of September over 1,500 customers were using StepStone's talent management products - providing an increasingly significant and predictable recurring revenue stream.

Key highlights of the third quarter included:

- 95 new customers for talent management products and continued extension of customer commitments.
- Closing of a record Online contract with a committed value of over €1.3m through to the end of 2009
- New and renewing customers in Europe that included Deutsche Telekom, ThyssenKrupp, GEA Group, Capgemini and West LB (Germany), Group 4 Securicor (Belgium), PRR and Game (France), Newell Rubbermaid (Denmark), Piaggio Group (Italy) and Europol (Netherlands). In the middle east the new client is Dolphin Energy
- Increasing customer demand from Eastern Europe and the Far East, with signed agreements with Hang Seng Bank and Leo Paper Group (Hong Kong), Credit Suisse (Singapore), Lanit (Russia) and Mol Plc (Hungary).

Saira Akbar, CEO, Global Management Consultants, the StepStone partners in the region commented:

"StepStone has a unique business model. Our Software as a Service products generate predictable revenues whilst our online products continue to benefit from the ongoing structural shift away from traditional media to online search and matching."

After unprecedented economic turmoil of the last three months there is no doubt that economic conditions are tightening across the globe which is in turn impacting customer confidence.

StepStone's strategy is to have a portfolio of products delivered to a wide geographic base of customers. The volume based online products enhance the company's ability to take advantage of favourable economic conditions whilst the software as a service based talent management products soften the impact of potential adverse economic conditions due to the inherent predictability of the monthly revenue streams from an increasing customer base."

The final quarter of the year is traditionally the company's strongest and we see no reason at present to indicate any change to this trend. StepStone will announce its results for Q3 2008 on 23 October.